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Income Tax Calculator (New vs Old Regime)

Compare your tax liability under the revised New Tax Regime (Section 202 [old Sec 115BAC]) and the Old Tax Regime for FY 2026-27. Identify which regime saves you more money based on your deductions and exemptions.

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Calculator and results

On an annual gross income of ₹12,00,000, tax under the New Regime is ₹0 (0% effective rate) compared to ₹1,11,800 under the Old Regime with ₹1,75,000 of deductions. The New Regime saves ₹1,11,800 a year.

Income & Deductions

Calculate your income tax under the default New Regime [old Sec 115BAC] and compare against the Old Regime.

₹

Total annual gross salary or pension, before deductions. For business or professional income, use the freelancer or self-employed tax calculator.

Old Regime Itemized Deductions

Optional

These deductions apply only under the Old Tax Regime. The New Regime gives a flat ₹75,000 standard deduction instead.

₹

Statutory maximum limit is ₹1,50,000.

₹

Up to ₹25,000 for self/family (₹50,000 if a senior citizen) and up to ₹50,000 for senior parents; anything above is not counted.

₹

Maximum ₹2,00,000 for self-occupied residential property.

₹

Calculate using CalcMate HRA Calculator or enter exempt allowance.

₹

Additional voluntary NPS contribution up to ₹50,000.

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New Tax Regime is Cheaper

You save ₹1,11,800 per year by opting for the New Tax Regime [old Sec 115BAC].

New Regime Tax

₹0

Effective tax rate: 0% (₹0/mo)

Old Regime Tax

₹1,11,800

Effective tax rate: 9.32% (₹9,317/mo)

Annual Tax Difference

₹1,11,800

Net savings with NEW regime

New Regime Standard Deduction

₹75,000

Statutory deduction revised in Finance Act 2024

New Regime Taxable Income

₹11,25,000

Section 156 [old Sec 87A] rebate applies: ₹0 net tax!

Old Regime Total Deductions

₹2,25,000

₹50,000 std + ₹1,75,000 itemized

Side-by-Side Tax Comparison (FY 2026-27)

HeadNew RegimeOld Regime
Gross Income₹12,00,000₹12,00,000
Standard Deduction-₹75,000-₹50,000
Itemized DeductionsN/A-₹1,75,000
Net Taxable Income₹11,25,000₹9,75,000
Tax Before Rebate₹52,500₹1,07,500
Section 156 [old Sec 87A] Rebate-₹52,500₹0
Surcharge₹0₹0
Health & Education Cess (4%)₹0₹4,300
Total Tax Payable₹0₹1,11,800

Saved scenarios stay in this browser only. No sign-up.

Best Choice: New Tax Regime

₹0

Saves ₹1,11,800 vs Old
Marginal relief is automatically factored into calculations when taxable income marginally exceeds the Section 156 [old Sec 87A] threshold.
What it is:
An Indian income tax calculator comparing liability under the New and Old regimes.
What it calculates:
Total tax payable, net taxable income, slab-by-slab tax, Section 156 [old Sec 87A] rebate, cess, and regime savings.

Key Assumptions

  • FY 2026-27 (tax year 2026-27) tax slabs and provisions.
  • Salaried standard deduction of ₹75,000 (New) and ₹50,000 (Old).
  • Section 156 [old Sec 87A] rebate applied up to statutory limits with marginal relief.
  • 4% Health and Education Cess on final tax liability.

How does the Income Tax Calculator work?

The New Tax Regime under Section 202 [old Sec 115BAC] offers lower tax slabs and a salaried standard deduction of ₹75,000, but foregoes itemized deductions like Section 80C, 80D, and HRA.

The Old Tax Regime retains higher tax slab rates, but permits deductions under Section 80C (up to ₹1.5L), 80D (health insurance), Section 24(b) (home loan interest up to ₹2L), and Section 10(13A) (HRA).

Under the New Regime, resident individuals with taxable income up to ₹12,00,000 receive a full tax rebate up to ₹60,000 under Section 156 [old Sec 87A], resulting in zero net tax for salaried income up to ₹12,75,000.

A 4% Health and Education Cess applies to the aggregate of income tax and applicable surcharge under both regimes.

Worked examples for FY 2026-27 under the New Regime, for salary income only after the ₹75,000 standard deduction: a ₹10,00,000 salary leaves ₹9,25,000 taxable, and the ₹32,500 slab tax is fully rebated, so the tax is ₹0. A ₹15,00,000 salary leaves ₹14,25,000 taxable: ₹93,750 slab tax plus ₹3,750 cess, ₹97,500 in all. A ₹20,00,000 salary leaves ₹19,25,000 taxable: ₹1,85,000 plus ₹7,400 cess, ₹1,92,400. Full slab-by-slab breakdowns: tax on ₹10 lakh, ₹15 lakh and ₹20 lakh.

Which regime wins depends on how much you can actually claim. Add up 80C, 80D, HRA and home loan interest, then compare both columns in the calculator; the old vs new regime guide shows where the break-even falls at different salaries. For the HRA figure, use the HRA Calculator first, and for monthly in-hand pay after tax, the Salary Calculator.

Income Tax Calculator formula

Tax Liability = Slab Tax - Section 156 [old Sec 87A] Rebate + Surcharge + 4% Health & Education Cess

Slab Tax
= Progressive tax computed on net taxable income brackets
Section 156 [old Sec 87A]
= Tax rebate up to ₹60,000 (New) or ₹12,500 (Old) for qualifying income
Cess
= 4% statutory health and education surcharge on tax payable

New Regime slabs for FY 2026-27 (unchanged since Budget 2025): 0-4L (Nil), 4-8L (5%), 8-12L (10%), 12-16L (15%), 16-20L (20%), 20-24L (25%), >24L (30%).

Income Tax Calculator: worked example

Gross Salary of ₹12,00,000: New vs Old Regime (FY 2026-27)

Gross Annual Income
₹12,00,000
New Regime Standard Deduction
₹75,000
New Regime Total Tax (4% Cess incl.)
₹0
Old Regime Deductions (Std + 80C + 80D)
₹2,25,000
Old Regime Total Tax
₹1,11,800
Recommended Choice
New Tax Regime
Annual Tax Savings
₹1,11,800

Income Tax Calculator: frequently asked questions

What is the zero-tax income threshold under the New Tax Regime?
For salaried employees, gross income up to ₹12,75,000 attracts zero income tax under the New Regime. This is because the ₹75,000 standard deduction reduces taxable income to ₹12,00,000, where the Section 156 [old Sec 87A] rebate fully absorbs the ₹60,000 tax liability.
Can I switch between the New and Old Tax Regimes every year?
Salaried individuals with no business or professional income can switch between the New and Old regimes every financial year while filing their ITR under Section 139(1). Individuals with business or professional income can switch to the Old Regime only once in their lifetime.
How much deductions do I need for the Old Regime to be better?
Usually a lot: the higher your salary, the more you need. At a ₹20 lakh salary, for example, the old regime only wins if your deductions (80C, 80D, HRA, home loan interest) exceed about ₹7.1 lakh. Below ₹12.75 lakh of salary the new regime already charges zero tax, so the old regime cannot beat it.
Is standard deduction available under the New Tax Regime?
Yes, the standard deduction under Section 16(ia) is ₹75,000 under the New Tax Regime for salaried employees and pensioners.
How much tax do I pay on a ₹15 lakh salary?
Under the New Regime for FY 2026-27, ₹97,500 a year if salary is your only income: the ₹75,000 standard deduction leaves ₹14,25,000 taxable, the slab tax is ₹93,750, and 4% cess adds ₹3,750. That is about ₹8,125 a month in TDS.
How much tax do I pay on a ₹20 lakh salary?
Under the New Regime for FY 2026-27, ₹1,92,400 a year on salary income alone: ₹19,25,000 is taxable after the standard deduction, the slab tax is ₹1,85,000, and 4% cess adds ₹7,400.
What changed for income tax from 1 April 2026?
The law changed but the tax did not. The Income-tax Act, 2025 replaced the 1961 Act, so the new regime is now section 202 (old 115BAC), the rebate is section 156 (old 87A), and the assessment year became a single tax year. The slabs, the ₹75,000 standard deduction and the ₹60,000 rebate up to ₹12 lakh are unchanged.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated